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The most recent dividend paid by a company was $1.25. The dividends are expected to maintain a constant growth rate of 6% forever. If the stock currently sells for $32.50 per share, what is the required return (round your answer to two decimal places)? (i) Describe and interpret the assumptions related to the problem. (ii) Apply the appropriate mathematical model to solve the problem. (iii) Calculate the correct solution to the problem.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92881392

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